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Domino’s Pizza delivers rise in online orders

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Almost third of Domino’s Pizza orders are now made online, the company’s six-month results showed today.

Some 32.7% of sales, worth £59.9m, came through the internet in the six months to June 27. That compares with online sales worth just over a quarter (26.2%/£35.2m) of total sales at the same time last year.

E-commerce sales grew by 61.4%, compared to growth of 38.9% at the same time last year.

One driver for the success, said chief executive Chris Moore, was the use of social media. The company’s main Facebook page now has more than 36,000 fans while other social media initiatives include a superfans programme, affiliate marketing and a link up with location-based social media site Foursquare.

Moore said: “All of these web-based activities offer a dual benefit of driving pizza sales online and building customer loyalty with this section of the community. We are delighted to see the results of this activity.”

The results came against a backdrop of a 28.6% rise in profits before tax and exceptional items in the six months to June 27, to £17.5m fro £13.6m at the same time last year. Sales rose by 20.8% to £237.1m in the period, from £196.4m last time.

The company has plans to add 19 new stores to its existing 627 in its 25th year of operation in the UK. The business originally opened in 1960 in the US.

Moore said: “It is easy to try and attribute our success to one thing – be it the weather, or Britain’s Got Talent, or the World Cup – but the underlying trend shows a more compelling picture. We have now been in business for 25 years and those years of experience give us the foundation from which we can seize every opportunity.

“It is great pizza, delivered as quickly as possible, by dedicated franchisees and store teams, which result in solid and steady sales growth, supported by innovative marketing on both a national and local level.”

Our view: Domino’s Facebook page is well worth a read – it’s a good example of how social media can be used to elicit and respond to customer feedback, as well as to drive sales.

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